The fleet in the LNG sector to double

	An LNG-tanker loading at RasGas pier in Port of Ras Laffan.

Liquefied Natural Gas (LNG) is going to be an industrial shipping adventure in the coming years. The growth in this sector is high, with yearly rates of 10–15 per cent. In terms of ships, it also is something rather unique: 103 tankers above 100,000 cubic metres are on order for delivery in the next few years. The existing fleet is 144 vessels according to the London broker Clarksons. No other segment in shipping has an order portfolio equalling some 75 per cent of the existing fleet!

Natural gas is becoming more and more interesting for the industrial countries in the steady demand for energy. Japan has been a big consumer of LNG for years, closely followed by South Korea. Right now, things are changing, as many other countries are looking into importing gas from various sellers. This often is a long process, as the sellers (and producers) of gas talk directly with the buyers to establish a contract.

A contract is typically a long-term standing agreement of a minimum of 25 years and often even longer in order to secure a reasonable payback time for the investment.

New industrial countries
The new industrial countries like China and India have opened their first terminal for the imports of LNG, but several other projects are in the pipeline as LNG is much easier to import. No processing after shipment at the producing terminal is needed.

In India, the Hazira terminal is about to open in April for the first cargo of LNG. The origins of the cargo has been kept a secret, but it’s believed that it will come from a Shell plant in Western Australia. And by the way, SvitzerWijsmuller has been awarded the contract for the terminal’s tug operation, including four tugs and a line handling vessel. The same company was also given the contract for the new export terminal at Damietta on the Egyptian coast of the Mediterranean. The four tugs, Svitzer Rasheed, Svitzer Delta, Svitzer Idku and Svitzer Elbeheira, passed Suez at end of March in a convoy on their way from the builders yard in Singapore to take up the challenge at the terminal. The first export cargo from the terminal was sent off on the Spanish flagged Cadiz Knutsen.

Some of the “old” countries are also examining the imports of LNG as an alternative energy source. The American state of California is one of the most interested countries at the moment. California has a steady and high demand for energy, and it has been undersupplied for years, so LNG as fuel could give California a boost.

Another country looking into the possibility of importing LNG is England. The old terminal on Isle of Grain could be a central import facility in the UK. And exports could come from Statoil in Norway, which also is a producer of LNG.

Shipping
Gas companies all over the world talk about LNG trains. RasGas in Qatar has designed RasGas Train 4, which is an export line with several ships operating like a ferry service between two ports. RasGas has the only Danish flagged LNG sailing between the Port of Ras Laffan in Qatar and Barcelona in Spain on a long term contract.

Some of the shipping companies involved in LNG are looking at the USA, which at the moment only has five of the world’s total of 40 LNG terminals.
Morocco has exported to the terminals on the east coast of the USA, but some companies are trying to get a foothold in this market because of the political uncertainty between the USA and the Muslim Morocco.

Many people involved in maritime security in the USA do not feel to good about Muslim-owned LNGs coming directly to a big US city every now and then and are prepared to switch to another operator.

Danish
A.P. Møller-Mærsk took up the challenge in the LNG trade several years ago, and at the moment is trading with one tanker, the Maersk Ras Laffan. The tanker is on charter to RasGas for 25 years. The Samsung built vessel will be one of six vessel in the Maersk fleet. But this number could easily increase, is the word from A.P. Møller-Mærsk.

The company wants to be a part of transporting LNG as well as other liquid commodities in the world. And not as an operator of five or six vessels, but more like that of 10 to 20 ships. The present order book has five units.

One of these is marked to a gas project, still a secret, but the vessel is going to be delivered in a red hull colour instead of the distinctive blue. The other four units have still not been fixed to anyone, says A.P. Møller-Mærsk.

Not so long ago, the Danish shipping giant was one of several companies invited to bid for another Qatar project. Maersk Tankers refused to submit a tender, however, as the contract was not lucrative enough.

//Bent Mikkelsen

Latest update 18-10-2006 8:49

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